The bank is keeping its options open about applying for a digital bank license in Singapore, and will likely follow steps it has taken in Taiwan and Hong Kong in partnering with non-bank firms, if it were to apply.
Standard Chartered has not ruled out participating in Singapore’s upcoming digital banking regime, a spokesperson for the bank told «The Business Times.»
«Our experience in these markets will serve us well as we continue to explore the best digital model for our clients in Singapore,» the spokesperson said.
The Monetary Authority of Singapore (MAS) in June announced that it will issue up to five digital bank licenses, comprising up to two digital full bank licenses, reserved for locally-owned entities, and up to three digital wholesale bank licenses. Applications are being accepted until the end of the year, with successful license recipients to be announced in mid-2020 and the rollout of operations by mid-2021.
Standard Chartered is among four foreign banks that have a large retail presence on the island. However, it can only apply for a digital wholesale bank license, which is open to foreign entities. Alternatively, it can look for a Singapore partner to set up a fully digital bank.
SC Digital, the bank’s joint venture with telecoms company PCCW, Hong Kong Telecom (HKT), and Chinese travel services provider Ctrip is among eight entities that have received a virtual bank license in Hong Kong.
Standard Chartered said it would offer travel, entertainment and telecoms products and services on its virtual banking platform, and integrate virtual banking into the services offered by its partners and leverage their customer bases to grow its reach.
The bank also took a 5-percent stake in Line Bank, an upcoming digital bank linked to the Link messaging app, which received a virtual banking license in Taiwan in July.